For nonprofits and public education organizations, 403(b) plans are a solid retirement option. And thanks to recent regulations, 403(b)s are structured more like 401(k)s than ever. But a byproduct of new regulations and growing plan popularity is confusion; 403(b)s are complex and the markets are volatile.
Recently, the Principal Financial Group and the Profit Sharing/401(k) Council of America (PSCA) released a new study indicating that 403(b) plan sponsors are coping well with the changing regulations and evolving markets. BenefitsPro spoke with Aaron Friedman, the national practice leader for nonprofit with the Principal Financial Group, about some of the key issues surrounding 403(b) plans. Friedman has been in the retirement plan business for 25 years.
BenefitsPro: There have been a lot of regulatory changes lately in regards to 403(b) plans. Can you outline these changes briefly?
Aaron Friedman: There are two key changes that apply specifically to 403(b) plans. The first is a set of final 403(b) regulations issued by the Treasury Department. These were the first major regulatory action on 403(b) plans in over 40 years. Generally effective Jan. 1, 2009, these regulations made sweeping changes across many areas including plan documents, non-discrimination testing, investment transfers, and plan distribution rules.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
